DUSHANBE, 18.05.2020. (NIAT Khovar) – While considering the economic situation and the high likelihood of a decrease in state budget revenues in 2020, loans of the International Monetary Fund (IMF) provided to support the state budget will be used primarily to fulfill state’s social obligations.

Particularly, they will be aimed at paying salaries and other social benefits, increasing financing for the health sector, targeted social assistance to low-income families, as well as servicing external debt and financing other sectors of the national economy, reported the Ministry of Finance of Tajikistan.

In early March 2020, the IMF issued a statement on the allocation of financial assistance to member countries worth of $1 trillion. Along with other member countries, Tajikistan in the first half of March 2020 formally applied for an urgent soft loan from the IMF. The request of the government was approved by the IMF, and negotiations were immediately initiated under the chairmanship of Padmaji Handelval from the IMF and the First Deputy Prime Minister Davlatali Said. As a result of these negotiations, the necessary agreement was reached on attracting 80% of the credit quota for Tajikistan, that is, $189 million as a long-term soft loan for a period of 10 years with a 5-year grace period.

On May 6, the IMF management decided to provide Tajikistan with a soft loan of $189 million, and on May 8, these funds were transferred to a special account of the Ministry of Finance at the National Bank of Tajikistan. In accordance with the terms of the IMF urgent lending, the Tajik government is obliged to publish quarterly reports on the use of allocated funds on official websites, as well as the results of annual audits of the use of these funds by the Accounts Chamber.